Paytm Payments Bank Under ED Scanner After RBI Clampdown

Paytm Payments Bank Under ED Scanner After RBI Clampdown

The Enforcement Directorate (ED) has initiated a preliminary inquiry against Paytm Payments Bank, according to a CNBC TV 18 report quoted by Reuters on Wednesday. This development comes just days after the Reserve Bank of India (RBI) barred the fintech giant’s subsidiary from accepting new deposits starting February 29th, 2024.

Fresh Setback for Paytm Payments Bank:

This action by the ED marks another hurdle for Paytm Payments Bank, which is already facing the repercussions of the RBI’s strict measures. Notably, RBI Governor Shaktikanta Das categorically ruled out any potential review of the decision, stating, “There is no review of this (PPBL) decision. If you are expecting a review, let me very clearly say there is (going to be) no review of the decision.”

Paytm Denies Investigation:

Despite the ongoing inquiries, Paytm has consistently denied any investigation against the company or its founder, Vijay Shekhar Sharma. In a recent statement, the company reiterated its commitment to compliance and stated, “We have consistently assured that neither Paytm nor any of its associates are under investigation by any regulatory agency. This stance has been further validated by recent statements from senior government officials. Our commitment remains unwavering towards operating in compliance with regulatory guidance and continuously enhancing our processes to further the reach of digital payments across India.”

• Keywords: Paytm Payments Bank, Enforcement Directorate, RBI, Financial Inquiry, Digital Payments, Fintech
• Hashtags: #Paytm #ED #RBI #FinancialInquiry #Fintech #DigitalPayments